Quảng Ngãi Sugar invests over VNĐ2 trillion to expand sugar and biomass power plants

July 11, 2024 - 08:09
The purpose of this investment is to develop a stable sugarcane material area and lay the foundation for deep processing activities, ensuring timely consumption of sugarcane for farmers and maintaining its position as a leading sugar business in Việt Nam.


At Quảng Ngãi sugar JSC in Quảng Ngãi Province. QNS plans to invest a total of over VNĐ2 trillion in four projects. — Photo Qns.com.vn

QUẢNG NGÃI — Quảng Ngãi Sugar Joint Stock Company (UPCoM: QNS) has approved an investment of over VNĐ2 trillion to expand its An Khê sugar processing plant and biomass power plant.

The investment includes VNĐ1.169 trillion to increase the sugar processing capacity at the An Khê plant in Gia Lai to 25,000 tonnes per day. This project started preparations in June 2024, with the plant expected to be operational by November 2027. The expansion aims to stabilise the sugarcane supply, support deep processing activities, and maintain the company's leading position in the sugar industry in Việt Nam.

Another significant investment is the expansion of the An Khê biomass power plant, adding a 40MW generator to bring the total design capacity to 135MW. This project, with a total investment of nearly VNĐ847 billion, will also begin in June 2024 and is expected to be operational by November 2027. The goal is to use bagasse from sugar production to generate clean energy, address environmental issues, and support the annual load growth in Gia Lai and the central region.

Additionally, Quảng Ngãi Sugar plans to invest in other infrastructure projects, including a B1 warehouse at the Biscafun confectionery plant (VNĐ16 billion) and a fire prevention system at the Vinasoy Bắc Ninh plant (VNĐ14 billion), starting from July 2024.

As of Q1 2024, Quảng Ngãi Sugar's total assets reached nearly VNĐ13.6 trillion, with high liquidity assets valued at over VNĐ7.3 trillion, including cash and short-term bank deposits. The company's fixed assets are valued at over VNĐ3.4 trillion.

The company has also increased short-term financial borrowing, with a balance of over VNĐ3.6 trillion, up more than 50 per cent since the beginning of the year. Currently, the company does not have any long-term debt policies.

Quảng Ngãi Sugar operates 16 subsidiaries, including breweries, soybean milk factories, sugar processing plants, power plants, confectionery factories, beverage plants, malt factories, mechanical workshops, and one wholly-owned subsidiary, Thành Phát Trading One Member Limited Liability Company. — VNS